Mortgage rates today are lower than yesterday's. There were no economic news releases this morning, so we'll just take our cues from the daily statistics below. This afternoon, the Fed will release its Beige Book, the notes from its previous meeting.
Investors take these notes seriously, as they could signal changes in the Fed's plans. Anything unexpected could cause rates to change later today.Click to see today's rates (Sep 23rd, 2017)
(As of 10:30 am EDT)
|Conventional 30 yr Fixed||3.625||3.625||Unchanged|
|Conventional 15 yr Fixed||2.875||2.875||-0.13%|
|Conventional 5 yr ARM||3.125||3.666||Unchanged|
|30 year fixed FHA||3.250||4.180||Unchanged|
|15 year fixed FHA||2.750||3.626||-0.03%|
|5 year ARM FHA||3.000||4.099||-0.01%|
|30 year fixed VA||3.250||3.415||-0.09%|
|15 year fixed VA||2.875||3.163||-0.09%|
|5 year ARM VA||3.250||3.384||-0.01%|
Today's rates started low, but data points mostly to increasing rates.
Mortgage rates todayÂ are still very favorable for home buyers. The climate is highly-encouraging for real estate purchases.
The week is very light on data. You can lookÂ for mortgage rate clues at three am when Presidential tweets emit from the White House, or analyze your tea leaves in the morning -- or you can just read this column until you get your rate locked.
The daily data will probably have more importance this week because there will be so few reports.
Today is a great day to lock a mortgage. Rates are even lower than they were yesterday, but signs point to possible increases later.
Here's the recommendation:
Mortgage interest rates depend on a great deal on the expectations of investors. Good economic news tends to be bad for interest rates, because an active economy raises concerns about inflation. Inflation causes fixed-income investments like bonds to lose value, and that causes their yields (another way of saying interest rates) to increase.
For example, suppose that two years ago, you bought a $1,000 bond payingÂ five percent interest ($50) each year. (This is called its â€ścoupon rate.") Thatâ€™s a pretty good rate today, so lots of investors want to buy it from you. You sell your $1,000 bond for $1,200.
The buyer gets the same $50 a year in interest that you were getting. However, because he paid more for the bond, his interest rate is not five percent.
TheÂ buyer gets an interest rate, or yield, of only 4.2 percent. And thatâ€™s why, when demand for bonds increases and bond prices go up, interest rates go down.
However, when the economy heats up, the potential for inflation makes bonds less appealing. With fewer people wanting to buy bonds, their prices decrease, and then interest rates go up.
Imagine that you have your $1,000 bond, but you can't sell it for $1,000, because unemployment has dropped and stock prices are soaring. You end up gettingÂ $700. The buyer gets the same $50 a year in interest, but the yield looks like this:
The buyerâ€™s interest rate is now slightly more than seven percent.Click to see today's rates (Sep 23rd, 2017)
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2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)